Mexican Twinkie

Is America Ready for a Mexican Twinkie?

Hostess, now bankrupt, plans to sell popular snack to a cake company south of the border. Hostess is now closing 33 plants meaning that 18,500 workers will be laid off. Thousands of company workers went on strike over the news after rejecting a contract offer that cuts both wages and benefits of the workers.

Mexican company Grupo Bimbo has taken notice and interest to the liquidation of the Hostess Company after last week’s announcement. Grupo Bimbo is the world’s largest bread baking firm owning parts of Sarah Lee, Entenmann’s and Thomas English Muffins. Hostess is now estimated to be worth $135 million a drastic decrease from its reported $580 million net worth a few years ago.

A company like Grupo Bimbo may have better luck than Hostess; lower-priced sugar that can be taken advantage of in Mexico as opposed to the sugar prices tied to U.S trade tariffs would bring more profit to the Mexican company. The family that owns Grupo Bimbo is currently worth $4 billion.